Faith Based Leadership

Insider Trading: A Humbling Decision

Two hedge fund managers who used to be employed by one of the world’s largest hedge-fund firms were recently charged with insider trading.  The charges came as part of the government’s wide ranging investigation into potential insider trading involving not only hedge-funds but also “expert-networks”.  According to an article on MarketWatch.com by Alistair Barr (http://www.marketwatch.com/story/more-insider-trading-charges-being-filed-2011-02-08), these men kept a log of inside information stored on a USB flash drive, and destroyed the external drives when the government’s investigation began closing in on them. Their employer fired them in 2010 for poor performance, and is cooperating with the investigation.  One of the persons charged has already pled guilty to one count of conspiracy to commit securities fraud and wire fraud, and a second count of securities fraud.

Throughout the course of time they were able to gather information on technology companies’ profit and loss statements, earnings, sales, product orders, and other information considered “material” or insider information.  They paid cash for the information, and allegedly netted millions of dollars as a result of their fraudulent activity. Other individuals have also been arrested on insider trading charges, and the government has raided several other hedge-fund companies beginning late last year.

I can almost guarantee you that these individuals never expected they would be charged with a crime. Their guilt will be determined by due process of the courts, but meanwhile, their lives have been changed, likely forever.  The world of hedge-fund managers is probably very similar to being in a pressure cooker.  Their role is to anticipate the future of the companies in which they invest in a way that maximizes profits for their funds, investors and employers.  Every bit of intelligence, every hint of information is critically analyzed and added to the equation of predicting the future.

They thrive in an environment of high risk and high stakes.  Their adrenalin rush comes from the huge sums of money they can make from a single transaction, the fortunes they control, and the sheer pleasure of winning.  The thrill from winning leads to the desire to do it again and again.  They crave the spotlight of success. They love standing on a pedestal. If they aren’t careful, they may find themselves playing a dangerous game, walking a tightrope, finding it difficult to pull back and make investment decisions without that “expert” information.

Luke 14:11 (NKJV) says “For whoever exalts himself will be humbled, and he who humbles himself will be exalted.”  People in positions of great power and influence are more vulnerable to making decisions or exhibiting behaviors that will ensure they not only remain in control, but that they increase in dominance and strength.  They may begin to feel that they’re above the normal rules by which others in their profession operate. They become addicted to the thrill of victory.  We’ve seen major political figures, corporate chiefs, entertainers and sports figures all go down this path.  One day they were heralded for their greatness, the next day they were shown on TV being led in handcuffs to a court arraignment….a process now known as the “perp” walk.

By the same token, those leaders in positions of great power who operate with humility, integrity, and a focus on giving to and serving others, will be lauded for their greatness.  Bill Gates and Warren Buffet are examples of such leaders. They’re worth billions of dollars, are shrewd businessmen, but have given more of their money away than they’ve kept.  They see their wealth as an opportunity to benefit those less fortunate than themselves. They understand the greater value of giving over receiving.

A familiar saying reminds us that “the higher you go, the harder you fall.”  So as a leader, make up your mind now whether you’re going to operate in piety or in humility, in receiving or in giving, in deceit or in honesty.

Motley Crew or Marvelously Capable

( Article first published as Motley Crew Or Marvelously Capable on Technorati.)

H-P recently announced a change in their board of directors as four people stepped down, and five new directors were appointed.These changes are considered significant in the wake of the scandal surrounding their former CEO, who left last year as a result of violations of their policies linked to an inappropriate relationship with a contractor. That was followed by the appointment last fall of a new non executive chairman, and a CEO.

Concerns about this newly appointed board as expressed by a variety of writers include some business relationships these new directors have with the CEO since several of them sit on various other boards together. More directly, Therese Poletti’s article in MarketWatch.com, H-P’s New Board a Motley Crew  on January 25, 2011 voices the concerns of some analysts and experts that the board “has become a haven for failed executives”, and identifies several new directors who exited their previous companies under not so positive circumstances. This, along with other aspects of H-P’s future plans, could cause concern for H-P’s investors if they’re not confident in the ability of the new board to lead the company to a successful future.

When we look at the leaders of companies where we’re investing our money, we typically want people with proven successful track records in the arena we’re focusing on. We want to minimize risks and optimize our future gain, and we don’t necessarily have the same view or perspectives as those who selected the leaders.We’re typically looking “in” or “up”, whereas those making the selection decisions are looking “down”. The position from which one is viewing is important here. Looking “in” implies that we’re on the outside, lacking complete information on the organization’s business and financial strategy and capabilities.Looking “up” suggests that while we may be on the inside, we’re not privy to all the information regarding the key criteria and experiences these leaders should possess. Finally, looking “down” means that we do have more knowledge and wisdom on the business needs and capabilities of who can fill them.So is the new H-P board really a “motley crew”, or are they “marvelously capable”?

Courtesy of Idea go

I’m reminded of another group of men who were hand selected and appointed as the leadership team for a service organization. They had no prior experience in the work they were asked to perform. They had the greatest respect for their leader, but for a while they didn’t really understand who he was or what he was doing.Though he spent a lot of time teaching them, they didn’t always understand his style of communication.They didn’t have the stamina that he exhibited.Though he expected them to do so, they couldn’t always replicate the things he did. Finally, one of their own leaked information that led to their leader’s capture and assassination, and they momentarily dispersed in fear.Some would have thought this was the end of that organization, but miraculously they rallied and came together again, stronger for their trials, and met to determine their next steps. After practicing and repeating all they had learned from their leader, they suddenly got it, and understood what he had been saying.

You’ve probably figured out that I’m talking about Jesus and His disciples. Why did he call fishermen and others to support Him in preaching the gospel and healing the sick?Who knows other than He looked “down” and in His infinite wisdom knew the deepest parts of their hearts.He knew what they were capable of doing.He didn’t call them based on who they were; he called them based on who they could become. He knew that he could use them in his service. They were anointed by God to form the first churches and lead thousands of people to salvation, carrying forward the gospel for future generations like us.

So in spite of the criticism and skepticism leveled at new leaders, rest assured that if they’re anointed by God for their position, their past is only a stepping stone for their future, and they can prosper in their new role, and lead their organization into victory.Though others may not see it, they may indeed be “marvelously capable” to excel in their role.

Copyright 2011 Priscilla Archangel, Ph.D.

Note: In the interest of full disclosure, H-P is a vendor of my employer, and one of their new board members also sits on the board of my employer.I have no business dealings or interactions however with H-P nor that board member.

Tigers, Coddling and Leadership

Assume with me that the goal of every “good” parent is to raise children to be smart, well rounded, and who will discover and fulfill their greatest potential. Most parents will agree with that statement, but when we begin to talk about how to accomplish that, the consensus generally stops. What type of parenting is most effective in achieving this goal? Consider a set of articles that appeared recently in back to back weekend editions of the Wall Street Journal.

It started with an excerpt from Amy Chua’s new book, “Battle Hymn of the Tiger Mother” where she describes Chinese mothers as being superior in their tactics of raising children to get straight A’s, and play the violin or piano.She didn’t allow her two daughters to attend sleepovers, watch TV or play computer games, be in school plays, choose their own extracurricular activity, not be the top student in class, and not play the piano or violin. Though she had “clashes of wills” with them, they learned to meet her high expectations, and her oldest teenager played the piano at Carnegie Hall.Amy’s perspective is summed up this way.”Western parents try to respect their children’s individuality, encouraging them to pursue their true passions, supporting their choices, and providing positive reinforcement and a nurturing environment. By contrast, the Chinese believe that the best way to protect their children is by preparing them for the future, letting them see what they’re capable of, and arming them with skills, work habits and inner confidence that no one can ever take away.”

As you can imagine, there was a firestorm of responses from readers.Ayalet Waldman provided a rebuttal the following week by saying that her four children of a Jewish mother were allowed to sleep over at friends houses, participate in and quit any extracurricular activity, play on the computer and surf the internet, and not play a musical instrument. She recounts a learning challenge that one of her daughters faced.Ayalet’s constant tutoring and practice drills only succeeded in making her daughter miserable, until they found a specialized training program and enrolled her in it.It was a grueling program for a second grader, but her daughter persevered to complete it and overcame her issue, not because of her parent’s pressure, but because she loved books and wanted to read.Ultimately Ayalet said “Amy Chua and I both understand that our job as mothers is to be the type of tigress that each of our different cubs needs.”

Leaders have a challenge similar to the mothers in these articles.Their goal is to develop individuals into high functioning teams, leveraging their specific skills to accomplish organizational objectives. They need to identify emerging talent and develop them to take on greater responsibility becoming the leaders of tomorrow. There are probably millions of books on how to be a great leader, with an equal number of different perspectives. What’s the right approach? The answer is a combination of the organization’s culture, the leader’s personality and talents, and the individual employee’s traits and skills.And the basis of this is every good leader’s gut instinct on what’s right for their team; what works for the moment; and what motivates the group.

As a leader, are you as attentive to developing your team as you are to raising your children? Or are you as focused on motivating your children as you are on getting results out of your team?Proverbs 22:6 directs us to train our children in the way they should go, so that when they’re grown, they won’t depart from it. So be attentive as a leader to train your team based on their needs; whether your style is to be a tiger mother, to coddle them, or hopefully something in between.Ensure that they develop to their highest potential.

Copyright 2011 Priscilla Archangel

Why Chinese Mothers Are Superior, by Amy Chua, Wall Street Journal, January 8-9, 2011, page C1

In Defense of the Guilty, Ambivalent, Preoccupied Western Mom, by Ayalet Waldman, Wall Street Journal, January 15-16, 2011, page C1.

Treasure in the Clouds

I’ve seen a number of articles recently talking about cloud computing. Though I knew it really wasn’t computers in the clouds, I decided to understand a bit more about it.  Basically, it operates like the internet.  Instead of retaining software or data on your computer, it resides in a remote server or data center and is accessible anywhere an internet connection is available.

Wikipedia says that “Typical cloud computing providers deliver commonbusiness applications online that are accessed from another Web service or software like a Web browser, while the software and data are stored on servers.” Individuals can store and access their personal data “in the cloud” or some type of remote server; and businesses are moving their data to cloud computing companies who will store their data, maintain the technology infrastructure, and ensure the security of it.

For most individuals and businesses, their most valuable asset is their data or information.  Think of it; most of our material possessions are replaceable, and if they cost a lot, they’re also insured.  Your house and its contents, your vehicle, and your expensive jewelry are (or should be) insured.  Your company’s buildings, equipment, and inventory are insured.  Thus, if they are damaged or destroyed, the insurance company will give you the money to replace it.

The only thing that cannot be replaced if it is lost is your data or information.  So accounts receivable or payable records, information about customers, financial accounts, marketing strategies, legal records, engineering drawings, manufacturing processes, etc. must all be stored safely to ensure it will never be lost. This is the intelligence or brains of your life and your business, and a valuable treasure.  And who among us hasn’t at least once had a moment when an important document we were working on was somehow electronically lost, never to be found by any expert technician; and we didn’t have another copy!!!  In fact, you’re even receiving this newsletter via a cloud computing service.  So aside from the people in our lives, what we value and treasure most is generally not tangible and must be safeguarded.  

My most important treasure is the promises that God has given specifically to me about my life and future.  I’ve written them down, read and reread them, meditated and prayed on them. This is the product of who He uniquely created me to be, and its irreplaceable.  That’s what gives me purpose and direction. My heart is caught up in Him, and His promises for me. I store my treasure of promises in His clouds, His place of safekeeping that ensures that not one word that He has spoken will be forgotten, lost , nor will fail to come to pass. I want the most important information I own to reside with the One who I know will keep it securely, yet provide access to it whenever I need it.  We should give our thoughts, hopes and dreams to God.  Rejoice at God’s word as one who finds great treasure in the clouds. (Psalm 119:62)

God’s Addressable Ads

Targeted TV Ads Set for Takeoff”.That’s the headline in the Wall Street Journal (December 20^th Section B) announcing that DirecTV will rollout “addressable ads” which will allow advertisers to send targeted commercials into around 10 million homes, based on the interests of that household. They’re partnering with Starcom MediaVest which purchases ads on behalf of major consumer goods companies.

A test conducted earlier by Starcom and Comcast Cable with a smaller target audience provided evidence that households receiving targeted ads changed the channels 32% less than homes which didn’t receive the specific ads.The DirecTV initiative will reach many more households, and while this is a $10-20 million venture, Merrill Lynch projects that by 2015, addressable ads will be an $11.5 billion business.

The basic premise of course is the ability of cable TV and other companies to collect and utilize information about its customers so that these customers will receive advertisements targeted to their interests. Advertisers can use their marketing dollars more effectively based on age, income, gender, interests purchases, favorite channels, etc.The customer in turn will receive messages that advertisers think they will be more responsive to, thereby increasing the likelihood of purchase, instead of changing the channel when a commercial comes on.

I admit that commercials are sometimes just interruptions to what I really want to watch on TV.I don’t have TIVO so when I’m watching TV (and generally multitasking doing something else), it’s easy to just ignore the commercials. This reminds me a little bit like life; busy focusing on work, meetings, family, friends and so many things to do; all the “important stuff”.Then here come the commercials; someone trying to tell me something for my own good, or warn me about the future. But do I pay attention or stop and listen?

In 1998, an anonymous donor purchased ads on billboards in Florida, and posted catchy but realistic messages such as:

• Will The Road You’re on Get You To My Place? –God
• Have You Read My #1 Best Seller?  There Will Be A Test.  –God

The messaging became a hit and billboard companies, among others continued the posts.

These words are like addressable ads in our lives from the God who knows our demographics, likes and dislikes, need and wants.He knows our present, our future and more importantly His purpose for our lives, and wants His very best for us.He’s constantly trying to communicate information and direction to us.Like an advertisement, He wants us to make a commitment, and offers himself in an appealing, loving and tender way. He programs messages to be delivered to us in a variety of ways; something a colleague says, a needy person on the street, a TV channel that we flip to; a song on the radio; a scripture in the Bible.

These are all ways that He uses to tell us how much we need Him; to share His wisdom and direction; to help us to focus on His will for our lives.God guarantees confidentiality of the personal information He has about us, but uses others to confront us on our behaviors.

So what message is God addressing to you? What “ad” has He placed on your “lifetime TV” to encourage you to make a commitment to Him, to take a particular course of action in your life?How many times will you have to “view” the advertisement for you to act on it? God is continually sending you programming that’s unique to His purpose and plan in your life.Just like addressable ads from your cable TV supplier, you can choose to view it, or you can ignore it. Your cable company knows what they want you to see for their corporate gain, but God knows what you need to see for your personal gain.Pay attention to His programmable ads.

“O lord, You have searched me and known me, You know my sitting down and my rising up; You understand my thought afar off. You comprehend my path and my lying down, and are acquainted with all my ways” (Ps 139:1-3 NKJV).

Want Insider Information?

The federal government is increasing its investigation into insider trading activities on the part of hedge funds and expert trading networks, according to an article on Marketwatch.com on November 23, 2010. They are concerned that these experts are providing investors with data that is significant enough to be considered insider information. ‘Expert Networks’ under microscope: Firms that connect consultants to investors hit by insider-trading probe also says that investors are increasingly concerned that the government may be changing its definition of insider trading and insider information.

According to the article, written by Alistair Barr and Sam Mamudi, expert networking firms “connect experts with investment firms that are trying to learn more about an industry or delve deeper into an issue or a company”. The firms generally have strict guidelines to ensure their experts comply with applicable laws on not providing non-public or sensitive information. This is part of the “mosaic” approach to investment research where investors gather many pieces of information that individually are not considered material, but collectively may provide valuable information without violating laws regarding securities.

When I think of the mosaic approach, I picture a stained glass window.  It’s comprised of many colored bits of glass that individually have no value or beauty, and provide no clue to what it could become. But when assembled to form a picture, and light shines through the colors in the mosaic; it tells a story, reflects its splendor onto that which is around it, and manifests the talent of the craftsman.

Investors want to assemble all the pieces of the mosaic and somehow put them together, like pieces of a puzzle, to see the entire picture of a company, and to understand what its future will look like. Very likely, we all want to gather pieces of expert information that we can assemble to show us things to come, so that we can make the right decisions today.  We want to optimize every possibility that our investments will have the highest returns, and get in on the leading edge of the next hot commodity or IPO.  We want anything that we spend our resources on — time, money, or energy – to yield positive results. We want to ensure we make the best personal and business decisions that will support accomplishing our objectives and achieving our future desired state.

Expert information is valuable in every aspect of our lives.  What business decisions should we make? Where should we invest our personal funds? Who should we hire? What job should we take? What career path will enable us to reach our goal? We research these issues; talk to “experts”; pay consultants for advice; work hard; work smart; and at the end of it all, try to assemble all these pieces of “mosaic” information to make the best decision possible.

But what if you had an expert network legally providing you with insider information to help you make the right decisions for every aspect of your life? What if you knew the craftsman who was creating your mosaic?  What if he revealed to what some of the pieces looked like and how they fit together, so that you could begin to understand the final picture?  This insider information would give you an understanding of your purpose in life, the decisions you need to make, and the actions you need to take.

Well I can introduce you to the master craftsman who can provide that insider information. You can have your own personal expert network to help you optimize how to manage your valuable resources. The only requirement is that you spend time getting to know this expert, and developing a relationship with him.  His information will require you to invest your time, it will require you to adjust your priorities, but this investment will provide increased returns in every area of your life.

This expert is none other than the Most High God.  His Word is a lamp unto our feet and a light unto our path (Psalm119:105).”The entrance of [His] words gives light. It gives understanding to the simple” (Psalm 119:130 NKJV).  Choose to seek the insider information that God will provide to you.  He will guide your decisions in the right pathway to success in Him.

Who is the God of All Things?

The November 22, 2010 edition of Newsweek has a picture of President Obama standing on one foot, with six arms and hands holding a house, a dove, a stethoscope, a globe, a military helicopter and a wad of money.It looks to me like he’s juggling the housing crisis, peace, health care, world issues, the military, and the economy. The caption reads “God of All Things: Why the Modern Presidency may be too much for One Person to Handle”.

The article, by Daniel Stone, talks about how the demands on the role of the President of the United States have increased in recent years due to the many issues and crises he’s expected to address. Add to that the fact that the speed of communication with the internet and multiple 24 hour news outlets can quickly transform minor stories into major ones.It goes further to say that the pace at which the White House staff operates appears to be almost beyond the capability of any normal organization, and their bandwidth seems stretched to capacity.There’s never enough time to discuss all the issues that the staff would like to review with the President, and his nightly briefing book is sometimes the size of a telephone book.

Whew! I don’t envy his job, and whether you’re Republican, Democrat, Tea Party or Independent, it’s obvious that no single person or party has all the answers to the challenges in the U.S. or circling the globe. Unfortunately, many people do expect the President to be the god (or God?) of all things.They expect him to find a way to address all the issues listed above, in addition to crime, poverty, natural and man-made disasters, and many more.

But let’s be real, there’s only one person who can do that.The Most High God.There’s only one person who has the wisdom to know what to do in every situation. The Most High God. There’s only one person who can guide the nation, even the world to peace, and provision. The Most High God. The God of creation is the same God today who can reveal solutions to problems, change situations overnight, overcome enemies, and heal the nation.

Psalm 138:4-5 says”All the kings of the earth shall praise You, O Lord, when they hear the words of Your mouth. Yes, they shall sing of the ways of the Lord.”The rulers of nations praised God for His wisdom and instruction. There’s nothing too big for Him to handle.And the Lord particularly wants to provide instruction to rulers, because their decisions can impact so many people for good.”Blessed is the nation whose God is the Lord, the people He has chosen as His own inheritance.” Psalm 33:12.Our entire nation can be blessed when we submit to God. He’s promised us His inheritance. Everything He has including wisdom, understanding, insight, and instruction is for us.

Maybe you have days or weeks or months when the pressures of your role seem to be closing in on you.Others’ expectations of your performance, and your team or organization’s ability to deliver seem unreasonably high; and challenges press in from all sides. I invite you to recognize the God who organized all creation, who established the limits of the seas, placed nature in order, created the beasts of the field, the birds of the air and creatures in the sea, and the system in which they operate.This same God can make order out of the chaos in your world, place His wisdom in your spirit, and provide answers to the challenges you face.All of this is freely available to us as we develop a relationship with Him, seek to know and understand Him better.

So I know who is the God of all things. I know who has the bandwidth to handle our nation’s problems. I know who has the answers for the challenges we face. My prayer is that our rulers will know Him too, and turn to Him for guidance in every situation.

Foolishness or Wisdom?

Because the foolishness of God is wiser than men, and the weakness of God is stronger than men.   I Cor 1:25

As leaders, valuing wisdom comes naturally.  We want to make right decisions, possess good judgment, exercise discretion, and have extensive knowledge in our areas of responsibility.  We expect to establish solid strategies and plans to accomplish objectives.

But the foolishness of God is far greater than even the wisest man.  Imagine that in God’s weakest moment, He is infinitely greater than man’s strongest moment.  When we submit our lives and our plans to Him, we may at times think situations or decisions are moving in a direction opposite to what is right or necessary.  But God says He will destroy the wisdom of the wise and make the understanding of the prudent of no value (I Corinthians 1:19).

With all the economic challenges we’re currently facing, it’s easy to move into worry and fear, particularly if we’re depending on man’s economy.  But if you get a glimpse of God’s economy, God’s wisdom for our finances, business, and welfare we might realize that He operates with different laws and rules.  We might realize that God can take our man made situations and turn them into God sized opportunities for His will to be accomplished.  We might realize that God’s abilities are limitless and He can turn circumstances around in ways we never dreamed; using strategies we could never imagine; through situations that we could never think of.

Let’s learn to view the circumstances around us through His eyes, and look for His wisdom.  Let Him reveal His mysteries and His glory to us. Let Him reveal His power through our weakness.